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There are 9.6 million dwellings across Australia, whose owners don't really want their own eventual sale price to be cheaper as a result of any government policy to make housing more affordable.
There will be acute interest in the negative gearing policy election debate from the 1.25 million investors, who represent an indisputable spread across low, middle and high income earners.
They thought property investment a relatively safer option than shares.
Already the recent debate surrounding negative gearing has made the market place nervous.
Normally federal elections trigger slightly reduced listings and sales activity as there's typically only lip service to any housing policy.
But this year's election is shaping up with housing as a stark policy debate.
It has already, and will continue over forthcoming weeks, trigger diverse reactions.
Some vendors hoping to sell their established homes as investment property have brought forward their listings to get it out before any adverse policy.
Others have bought an investment hoping there will not be any retrospectivity of any adverse policy.
Ray White Group chairman Brian White said any shift in policy would be a “terrible hit” to the market.
"It has already taken away some of the enthusiasm for property," he said yesterday.
"The debate has created uncertainity which is never good for a market."
“It'll be mayhem,” Century 21 chairman Charles Tarbey forecasts.
Noting most people invest in property for the capital growth benefit not for the gearing benefits, the Aussie Home Loans founder John Symond recently suggested only allowing negative gearing on new homes would trigger a drop by at least 20 percent in value once a new home became an established home that investors would likely pass on.
John Symond says the average Australian understands housing and they try to build up a nest egg for future years.
"But they'll run a mile," he said if their was any tinkering.
"Everyone will be too scared."
"Imagine what that will do to the real estate market."
This article was first published in the Sunday Telegraph.
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jchancellor-FAypfDUnLy

Negative gearing and house price values to be key election issue

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Tax reform to target Australia’s distorting capital gains tax and negative gearing regimes could net the government A$5.3 billion in tax revenue per year, according to a new report from the Grattan Institute.
<a href="https://grattan.edu.au/report/hot-property/" target="_blank">The report</a> recommends reducing the capital gains tax discount for individuals and trusts to 25 percent, and phasing in limits to negative gearing over 10 years.
“The case for reform is extremely strong and we do not think that this is likely to lead to a material crash in the housing market,” said the report’s author John Daley.
Daley and report co-author Danielle Wood have modelled the impact of their recommendation on house prices, rents and the rate of new housing development, estimating house prices would be 2 percent lower than otherwise.
Under their suggested tax changes people would no longer be able to write off losses from passive investments like housing against unrelated wage income.
“The only developed country we have found that lets you deduct the costs of interest and allows you to deduct it from your labour income apart from us is New Zealand,” Daley said.
Curtin Law School Associate Professor Helen Hodgson said the proposals were well balanced, based on sound evidence, and would improve the efficiency and fairness of the tax system.
She said the challenge was to claw back concessions without creating further distortions. “In that respect the Grattan Institute recommendations go further than those proposed by the Australian Labor Party.
“The ALP proposals allow existing negatively geared properties to remain deductible. This would have a lock in effect similar to the pre-CGT exemption from capital gains tax. Borrowers would be reluctant to sell their property and reinvest in other, potentially more productive, forms of investment.
The Labor Party proposal would reduce the capital gains tax discount to 25 percent and restrict negative gearing to new properties only.
Daley said this approach was likely to create a new distortion in the housing market.
“Essentially those new houses will be higher priced than the older houses and so you’ll get a distortion as investors disproportionately show up to the auctions for new housing and owner-occupiers disproportionately show up to the auctions for old housing. I’m not sure why we’d want to encourage that.”
Prime Minister Malcolm Turnbull has argued Labor’s proposal would deliver <a href="https://theconversation.com/negative-gearing-changes-wont-drive-all-investors-from-the-housing-market-heres-why-55505">“</a>massive shocks” to the residential housing market, removing all investors. Finance Minister Mathias Cormann has said it would drive down the value of established properties, and push up the cost of rental accommodation.
But Daley said given new housing supply was significantly restricted by planning rules rather than inadequate returns, it was unlikely there would be any material impact on supply or rents.
“As Commonwealth Bank CEO Ian Narev, who sits on a loan book of $400 billion has said, what keeps him awake at night is interest rates and unemployment rates, not negative gearing.”
Data from the Australia Tax Office shows negative gearing is more popular among taxpayers on higher incomes, and the Grattan Institute argues it largely benefits the wealthy.
<h4><a href="/images/2016/04/26/image-20160422-26970-mc5e3t.png" target="_blank">Click to enlarge</a></h4>
<img src="/images/2016/04/26/image-20160422-26970-mc5e3t.png" alt="">
<h4>
Taxable income is income after deductions, including rental loss deductions. ATO/Grattan Institute, Author provided
</h4>
Reforming the system would result in more funds instead flowing into equities, businesses and bank deposits.
“The current regime pushes people into property, it encourages them into much higher leverage than they would have otherwise, and that increases the volatility of the housing market and the vulnerability of the financial system,” Daley said.
 
Charis Palmer is deputy business editor, The Conversation, and can be contacted <a href="https://theconversation.com/au/team#charis-palmer" target="_blank">here</a>.
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Negative gearing windbacks could deliver $5.3bn a year: Grattan Institute

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Interactive China Cultural Technology Investments has spent around $29 million on Victoria’s Balgownie Estate winery, according to the Weekend Australian.
Balgownie Estate has been producing wines since 1969, mostly known for its reds, at its Bendigo property.
Established by the legendary winemaker Stuart Anderson in 1969, Balgownie Estate was the first vineyard planted in the Bendigo district in more than 80 years.
The 33 hectare vineyard is situated on a gentle slope overlooking Myer's Creek at Maiden Gully.
In 1999 brothers and passionate wine lovers Des and Rod Forrester heard the rumour that Balgownie Estate was to be offered for sale. Digging out a couple of prized bottles of Balgownie Estate Cabernet Sauvignon from Rod's cellar, they found themselves hatching a plan to buy the vineyard and the winery in Bendigo. The Forrester brothers and their long term family friend Bill Freeman submitted a tender that same day, and with little to-ing and fro-ing the vineyard was theirs, according to the winery website history.
In 2002 the Forresters expanded to their Yarra Valley site and started building what is now the cellar door, restaurant, conference centre and 70 spa suite apartments and a state of the art day spa.
The winemakers at Balgownie have been notably long standing as in over 40 years, there have been just five: founder Stuart Anderson was succeeded by Mildara Blass winemaker Lindsay Ross. Tobias Ansted was the first winemaker under current ownership, starting in 1999 and leaving just before his 10 years were due in late 2008. In January 2009 winemaker Mark Lane joined the team and he was suceeded by the assistant winemaker Tony Winspear for the 2014 vintage.
The 110 ha combined holding represents the group’s third investment in the sector after spending more than $17 million last year acquiring Lancefield Estate and Hepburn Springs, near Daylesford, with winery accommodation, conference centres and land for development.
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Interactive China Cultural Technology buys Victoria’s Balgownie Estate winery

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In our Purchase or Pass segment this week with Charles Tarbey and Tom Panos we see if it was still possible to get a great investment, close to the city, for a reasonable budget at the end of last year.
Location: 8.5kms from CBD
Beds: 1
Bath: 1
Parking: 1
SQM: 68m
Price: $625k
Rent: $550-600/wk
Chris: It’s a 1 bed, 1 bath unit with parking 8.5km’s from the CBD and <a href="https://www.realestate.com.au/property-apartment-nsw-coogee-121217178" target="_blank">less than a km to the local action</a>. It’s a 68 sqm first floor unit, with courtyard off the lounge for outside dining and entertaining. It’s located at the back of the building in a well maintained security block. The property sold for $625k, has a rental estimate of $550-600/wk and has strata fees of $633/qtr. I thought we’d look at some of the information on the advert and decipher how we’d read into that. So when you hear something that’s maybe 8.5km from the CBD and less than a km from the heart of the suburb, what does that mean to you Charles?
Charles: Well, as we’ve always said the western suburbs start at Centennial Park for most people. It’s nice and located close to the city and if you’ve brought it up or you’ve raised it as a property for purchase or pass it’s likely to be in the eastern suburbs somewhere and you’ve likely bought it off one of your mates who work near the eastern suburbs. That’s what I got out of there. What have you got out of that Tom?
Chris: What about for you Tom, 68sqm?
Tom: It says to me that it’s not tiny, it’s the sort of unit that’s liveable. So they’re happy to talk about the size there. And on that previous point, 8.5ks to the city. Anything within 10ks of the city you think it’ll suit a city dweller. So it feels like you might not be right in the heart of it, but you’re close to it. That’s the initial impression.
Chris: Charles, for some of the listeners in the Blue Mountains who like fresh air, how does the courtyard suit?
Charles: Well, I had a look at the photo it looked pretty nice. It looked like I was looking at a wall but was that right, are you looking at a bit of wall?
Chris: Potentially, yeah
Charles: So we’d call that privacy, right, so you get no neighbours looking at you. So that’s what I’d get from that. Tell me, 68sqm does that include a patio?
Chris: That’s including the patio, yeah
Charles: and not the car space
Chris: Yeah, I think car space is maybe 15 on top or something. So again it’s not massive.
Charles: No, it’s a great price for that size
Chris: Backward block Tom?
Tom: Backward block to me, straightaway the initial feeling is that it’s quiet, that you’re not going to be hearing lots and lots of noise. That’s the suggestion on why the agent would write that in the marketing literature.
Chris: Maybe the block’s the other way around and the backs the freeway, you never know so you’ve also got to go and check it out at the same time. But in this case that’s right. North facing Charles?
Charles: Well, that’s an important part of it, you know, the sun, making sure it’s not facing the west where you’ve just got to have your air conditioning on at a certain time. Facing north always is an appealing thing and every agent will use it when they can.
Chris: 22 end block Tom?
Tom: 22, it’s basically saying it’s not one of these big Meriton complexes, where you won’t know everyone. 22, you’ll get to know who the people are there. It’s also not as good as say 6, 8, 10 or 12, but 22 says that it’s not a monster of a building. 
Chris: Yeah, reasonable size. 633 a quarter for the strata fees Charles?
Charles: Yeah, I thought that was really excellent. Actually, and I would have promoted that as probably one of the first points because some of those buildings down there can cost you a great deal more and a lot of people are very concerned about strata fees and they should be.
Chris: Yeah, and I’ll do the final one, 5-600 a week for the rent, 4 and a half to 5 per cent rent this market it’s pretty superb so purchase or pass for you guys?
Charles: Definitely purchase based on the price
Chris: And what about you Tom?
Tom: Purchase, whether it’s 625 or 650 I’m not quite sure what it was, but it’s a good buy.
(Chris) I think this is an almost text book purchase for someone that has a limited budget and still wants to stay in a blue chip suburb. Everything ticks the boxes for me so I would PURCHASE
To watch the discussion in full, <a href="https://www.youtube.com/watch?v=eKMvn0Pu9nc" target="_blank">click here</a>.
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Purchase or Pass: Property investments on a reasonable budget with Chris Gray

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In our Purchase or Pass segment this week with Charles Tarbey and Tom Panos we take a look at a potential investment that has had a very large special levy raised against it but it’s actually been paid by the vendor. 
Location: 4.6 kms from CBD and less than a km from a university, hospital Beds: 2 Bath: 2 Parking: 1 SQM: 94m Price: $765k Rent: $700/wk
Chris: So we’ve got a <a href="https://www.domain.com.au/304-50-56-mallett-street-camperdown-nsw-2050-2012362589" target="_blank">two bed two bath unit</a> with security parking in a block of 14.
The building is located just 4.6km from the CBD and less than a km to a university, hospital and the local shops, restaurants and bars. Now the property is quite large at 94sqm and features a second bathroom and balcony with a bright northerly outlook. A special levy of $50,000 per unit was raised and paid by the current owner but the work has not yet been completed and is due to be done this current year to sort out some water proofing issues and to repaint the facade. So we’ll start with the basics, Charles, what is a special levy?
Charles: Yes, well what was waterproofing for, what happened?
Chris: Yeah, something funny happened. What is a special levy?
Charles: Obviously, you’ve got to raise if there are certain issues such as that and they need extra funds. If the current funds that they have in place are not covering what they need they’ll raise it. We did a renovation in a foyer in Sydney in one of our office complexes which I’ve got a couple of floors and there was a special levy raised for that as well, so we had to make sure… it wasn’t for any other reason than beautification for example, and everybody agreed on it, we thought it would be good for the building. But you’ve really got to protect yourself too because if the owner’s already paid that, how do you know that the owner’s not going to take that back before the money’s spent which they’re entitled to do. You’d know that.
Chris: Tom with the special levies, how expensive can they be, I mean you’d obviously see it at auctions?
Tom: Well, if you’ve got a strata plan that people have been contributing very little money and because they’ve been contributing very little money there’s been no work been done and then there comes a point where serious work needs to be done, you could actually have a big special levy. But, on the other hand, if you’ve been contributing to a strata scheme at the average rate you’ll only get a special levy if there’s an emergency and that’ll be, as Charles says, for funds beyond the normal. So I think it’s an important learning that when you buy a property that you get a strata report done and you can actually see how much money’s in the sinking fund and you can actually see what work’s been done, because if no work’s been done on a property for 20 years, sooner or later work is going to have to get done and if there’s no money, you should be thinking that, hang on a second I might be up for a special levy which no one knows about at the moment.
Chris: It’s a really good point, because so many people, especially first home buyers, will go and choose somewhere because it’s maybe $500 a quarter, normal levies, rather than maybe a thousand, and say this building’s cheaper, but it’s the false economy because maybe they’re not looking after it but a thousand dollars would have been cheaper.
Tom: Absolutely, to me, a special levy is for saving. It’s allowing you to be protected for a time that the money’s going to be needed verses having to hear a bad surprise.
Chris: And these special levies, they can almost happen overnight, can’t they?
Charles: They can and if you’ve got major issues, like some of the apartment complexes around the country have got concrete cancer and it becomes noticeable. You’re talking about waterproofing in an apartment above a certain apartment and it starts to cause a problem, well they’ve got to do something urgent about it, and they’ve got to vote and generally people don’t want their property to fall apart so your stuck in that, in that process.
Chris: So the two scary things I’ve heard about special levies is… we bought apartments where you suddenly buy and exchange and there’s no talk about it at all and miraculously the body corporate gets together and between exchange and settlement they suddenly put a special levy in and then suddenly there’s nothing the new owners can do about it. To me that’s fraud.
Also, I think in these cases where there’s funds in, so if they put the 50 grand in, we’ve been told by solicitors that there’s nothing to stop that owner taking it back out. So it’s then the buyer’s will to get the clause to say, well, I’m buying it in this condition with this amount of money in strata, if you take the money out then that’s coming off the purchase price.
Charles: That’s what you’ve done, so it looks like a pretty good apartment in any case. For that price it’s quite low for where you’re saying it is located. Something like that’s a very good price.
Tom: Yeah, I would say a purchase as well because one of the pluses is you scare a lot of buyers when they hear this sort of stuff, and that’s a big plus because you’ve got less competition.
Chris: Yes, so for some people it’s a scare, for other people it’s a positive. So look I’m generally a fan of special levies as it either means they’re nipping a problem in the bud before it gets more expensive and they often improve the building and add value. It’s a great sized apartment for the money and so I would purchase.
To watch the discussion in full, <a href="https://www.youtube.com/watch?v=Ucrt2tu9pEg" target="_blank">click here</a>. 
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Special levies: Purchase or Pass with Chris Gray

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Which is the better property investment – Sydney or Gosford?
Gosford is the clear winner, according to <a href="https://www.ibuynew.com.au/" target="_blank">iBuynew's</a> Mark Mendel.
<a href="/images/2016/04/21/Screen%20Shot%202016-04-22%20at%208.27.27%20AM.png" target="_blank">Click to enlarge</a>
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Which is the better property investment, Sydney or Gosford? Mark Mendel

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Lenders are offering large discounts for new business and rebates for new borrowers refinancing with them, according to Alan Hemmings from Oxygen Home Loans.
He recently noted the following examples. 
New business discounts (owner occupied loans with LVR below 80 percent) 
<ul>
<li>St George offered a 1.35 percent discount on new business valued above $500k and 1.45 percent above $1m</li>
<li>Commonwealth Bank of Australia offered a 1.4 percent discount on new business above $750k</li>
<li>Suncorp offered a 1.55 percent discount on new business above $150k</li>
</ul>
Refinancing rebates (T &amp; C apply) 
<ul>
<li>St George is offering a $1,500 rebate for all new refinances valued above $250k</li>
<li>Commonwealth Bank of Australia is offering a $1,500 rebate for all new refinances valued above $250k</li>
</ul>
Alan said every bank has a different process for assessing your application and this is known as your credit score – not to be confused with your credit file:
<ul>
<li>Your credit score is a form of ranking applied to you as a person by a lender. It is based on a range of factors unique to the lender and based on the performance of their loan book. They look at all the attributes of clients who have loans that perform to determine the types of clients they will lend to; and </li>
<li>Your credit file is a long-term record of your financial behaviour, which banks can access to help them calculate your credit score. Have you ever defaulted on a home loan repayment or electricity bill? Bought new furniture on interest-free terms? Applied for a home loan or any other finance? All of this will be on your credit file </li>
</ul>
How your credit score is assessed could mean the difference between application approval and decline; and it will also impact how much money you can borrow, sometimes by tens or even hundreds of thousands of dollars. 
Factors lenders consider to determine your credit score. 
<ul>
<li>Your age </li>
<li>Drivers’ licence – lenders see this as an indication of financial stability </li>
<li>Home phone number – another indication of stability </li>
<li>Number of credit enquiries on your credit file (such as home loan applications that were rejected or approved but not used; as well as purchases on interest-free terms, such as new furniture) </li>
<li>Defaults on your credit file (gas, electricity, council rates, home loan repayments) </li>
<li>Employment – lenders will look at your type of employment (part-time, casual, self-employed, contract or full-time); the industry you work in; and how long you’ve worked for your current employer. If you are full-time in a relatively stable industry and you don’t change jobs every two years, you will score higher than someone who is part-time or has changed jobs frequently </li>
<li>Savings history – lenders will consider how much you’ve saved and over what timeframe. Your ability to save indicates your ability to repay a loan </li>
<li>Other assets – includes cars, furnishings, shares etc. A strong asset base, like a strong savings history, shows you’re not wasting your income and you’re motivated to build wealth</li>
<li>Loan to valuation ratio (LVR) – the lower your LVR, the better your credit score. This ties in to your savings history – the larger your deposit the better</li>
<li>Residential history – lenders want to know whether you’re still living at home, boarding, renting, living in your own property etc. How long you’ve lived there is also an important indicator of stability </li>
</ul>
He said there’s also many crucial differences between lenders in how they calculate your credit score.
Part of your credit score relates to ‘serviceability’ – that is, your ability make your repayments.
This, in addition to your equity in other assets, will determine how much you can borrow. 
<ul>
<li>Examples of differences in how lenders assess your income (or ‘serviceability’) </li>
<li>Rental income – lenders will use 60 percent-80 percent of your rental income. Some lenders will use rental income as determined by a valuation, others will use actual rent receipts</li>
<li>Other mortgage debts – most lenders now apply the benchmark rate to other existing debts, so a rate of 7.5 percent is applied to existing mortgages rather than the 4-5% you’re actually paying now </li>
<li>Credit card debt – lenders will use 2.5 percent-3 percent of your credit limit (not the outstanding balance) to calculate a monthly repayment</li>
<li>Other expenses – any regular ongoing expenses will factor into your serviceability </li>
<li>Bonus Income – lenders will use 80 percent-100 percent of any bonus income</li>
<li>Commission income – lenders will use 80 percent-100 percent of any commission income</li>
<li>Industry allowances – some lenders won’t include allowances at all, others will use 80-100 percent of shift allowances or tool allowances when calculating income</li>
<li>Overtime – lenders will generally use 80 percent of overtime income</li>
</ul>
He said you can imagine what a difference it would make if your chosen lender bases their calculations on 80 percent of your rental income, 100 percent of bonus income and 100% of your allowances compared to say, 60 percent. 
"In order to ensure your loan application is approved for the highest possible borrowings; and to avoid loan rejections which will stay on your credit file for 7 years, you need to choose the lender that will assess you the most favourably when making your next application," he said.
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Lenders seeking new borrowers with discount offers

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Foreign buyers will have to pay more stamp duty on Victorian residential real estate.
The Victorian government could raise an extra $500 million over four years.
Treasurer Tim Pallas said next week’s budget will increase the stamp duty surcharge for foreign buyers from three to seven per cent.
The land tax surcharge for absentee owners will rise from 0.5 to 1.5 percent.
“Victorians would say we deserve a contribution back into the state services from foreign purchases,” Mr Pallas told radio station 3AW.
The Labor government first introduced the surcharges for overseas property owners in last year’s budget.
Statistics show foreign demand for new properties in Victoria leapt from about 5 percent in 2011 to more than 30 percent in 2014.
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Foreign buyers in Victoria to have even higher stamp duty

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Aquis Australia, controlled by Hong Kong billionaire developer Tony Fung, is buying a 1700 sum beachfront site in Surfers Paradise for more than $23 million.
The 3464-3466 Main Beach Parade is one of the last major beachfront development sites in the area and was created through the amalgamation of apartments in the Pacific Point apartment building and two adjoining properties, according to the Courier Mail.
It will be Fung's third major acquisition of a site in Surfers Paradise in a year.
The 1700 sqm site has 70m of beach frontage.
“Beachfront development sites are increasingly rare or come with major hurdles to development,” Fung was quoted as telling the Courier Mail.
Fung also controls the ASX-listed Aquis Entertainment that owns and operates Casino Canberra and is currently progressing plans a for a large-scale real estate and entertainment project at Yorkeys Knob, north of Cairns.
Last year, he paid $55 million for the former International Beach Resort on the Surfers Paradise Esplanade where he is said to be planning a Q1-scale apartment tower.
Last week, a consortium comprising Aquis Australia, CCCC International Holding Ltd and Tandellan Group completed the acquisition of a 1.05ha site bordered by the Gold Coast Highway, Palm Avenue, Cypress Avenue and Surfers Paradise Boulevard for $40 million.
Fung said he and his partners were considering a range of development options for the site.
“It is the last, large-scale undeveloped site in Surfers Paradise and presents a tremendous opportunity to create something special that will compete for attention on the world stage,” he said.
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HK's Tony Fung acquires another Surfers Paradise site for $23 million

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Joining Chris on the latest episode of your Property Empire is Andrew Rechtman from Realestate.com.au and Charles Tarbey, Chairman and owner of Century 21, Australasia.
During the week we had an email in from Frank Raiti in Sydney and he asked:
I've just received a letter from my Strata managers as one of the other owners in my block has requested a Special By-law be introduced to prohibit smoking on the whole property.
I don’t live there and so it doesn't directly affect me but how do you think it will affect my ability to rent or sell the property in the future? Is it a positive or a negative?
Charles: I’m not a smoker so I guess it would be a good thing if you’re not a smoker, because those people who don’t smoke can really smell it.
Chris: More and more these days because no one’s smoking
Charles: If one of my team goes out in the back lane for a coffee you can tell well before they get anywhere near you they’ve been smoking. I think it would impact very much on their ability to rent. I think also, in fact, on the sale price.
Chris: Do you think that’s a positive or a negative?
Charles: I think it’s a negative thing because people like to have a smoke and you can’t take that away. If a guy has nowhere else to go what are you going to do? walk out to the street in your own home now, in your own property and have a smoke? It could be quite a problem for values and for renters. Absolutely. 
Chris: Well the other thing is do you have the other tick box on REA, smoke free zone? 
Andrew: For a smoke free zone yes, but there certainly are things like pet friendly versus not pet friendly. There are issues around making noise. There are buildings where you’re not allowed to have excessive noise and parties. Even parking on some property. My personal favourite is… we have seen buildings with excessive smoke from BBQs… so you’ve got to keep the BBQ under control. It’s very hard to know and you’d have to talk, you know, for your reader, you’d have to ask what is the domain in that particular building? Talk to the tenants, do the tenants mind? I tend to agree with Charles. 
Charles: How do you police it though, really?
Andrew: There’s got to be better ways of them putting, you know, by-law in the building to stop smoking and it does feel like it’s stepped over that personal…
Chris: You see with corporate buildings these days that ban the smokers from being out the front because it’s a bad image for the company as well isn’t it. 
Charles: I think it’s a very bad image for any business when you’ve got people out the front having a smoke. I know some companies where people stand out the front and have a drink. You know, they’ve got a can of VB in the hand and it never looks good. So the back lane is always the best place. But still, you’re going to end up removing a whole series of situations. Pet friendly’s great because a lot of people have a small pet and I don’t see that as an issue as long as it doesn’t make so much noise, but boy oh boy you’re getting really into it if you’re going to start smoking.
Chris: The pet friendly thing is, if you didn’t like pets and you’ve found they’re noisy, would that reduce buyers in the building?
Charles: Well, anything that reduces the opportunity to expose your property to more sellers than normal is always going to have an impact on your price. Limitations like a first home buyer’s property is going to have a million buyers looking at it. A super residence in the eastern suburbs or top area in any area of Sydney is going to have 10 buyers looking at it. 
Andrew: It depends on community standards as well. So at some point it’s going to flip the other way which is I won’t buy from a building that allows smoking. We’re seeing that change in community standards over time. I remember going on airlines where you could smoke not that long ago and you could smoke in bars and pubs and restaurants.
Chris: But having the pet friendly, for instance then, there’s a lot of people who won’t rent. So my philosophy on rentvesting is all good financially but if you’ve got a pet or you’ve got a dog then suddenly you can’t do the rentvesting thing. So that’s where someone may get a premium to get into pet friendly. 
Charles: They may, but I think people just don’t tell you they have a pet. I mean my experience in real estate is you don’t get the full picture on what’s really going on when somebody’s renting. I’m sure that’s your experience too. You rent a property out to one person and in some parts of medium density, you find 10 people living in the property.
Chris: So, would you go with the by-law or go against it do you think? And obviously we’re not giving financial advice here.
Andrew: I’d encourage you to talk to the tenants and see what they think. If there’s a general mood that they shouldn’t be smoking then I’d probably be in support of it. But I think in the long term it probably devalues your property.
Charles: I would be against it and I’m a non-smoker.
For more information other things to consider when buying a property contact Chris at <a href="mailto:yourempire@skynews.com.au" target="_blank">chris@yourempire.com.au</a>.
To watch Your Property Empire on Sky News Business with Chris Gray, <a href="https://www.youtube.com/watch?v=7azCaK_aYKU" target="_blank">click here</a>.
 
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Should strata place a ban on smoking? Chris Gray's Your Property Empire

A who's who of Australian surfing, business and entertainment has emerged on title records following the completion of Esprit Rainbow Bay, the latest boutique beachfront apartment development by former professional surfer Paul Gedoun's S&amp;S Projects.

The completed project has attracted an enviable collection of owners, many with long-standing ties to the southern Gold Coast and the surf culture that has helped define Rainbow Bay and neighbouring Kirra for generations.

Given Gedoun's own background in surfing, it perhaps comes as little surprise that some of Australia's most recognisable surfers have chosen to buy into the development overlooking one of the country's most celebrated stretches of coastline.

Pezet Matheson directors Jayde Pezet and Todd Matheson launched the project in late 2021, and have managed the sales campaign all the way through to its sell-out and recent completion.

<img alt="Esprit" data-entity-type="file" data-entity-uuid="08fc6261-b84e-4b09-8a44-66d3067fd0d1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-29%20at%208.51.05%E2%80%AFAM.png?VersionId=4AOcb6ETZwNUnMPdTtz1B3pZAIB_jgZ2" />

Former world champion Mick Fanning, who grew up in Coolangatta, secured an apartment in 2023. He paid&nbsp;$2.07 million. Last year he sold his Bilinga home for over $16 million.

Three-time world champion Joel Parkinson also purchased in the development, alongside big wave surfer Mark Mathews. Mathews bought the most expensive apartment in the building, spending just over $4 million.

Joining them is Rip Curl founder Doug Warbrick, whose company helped shape Australia's global surfing industry over the past five decades.

The appeal of Rainbow Bay has extended well beyond the surfing community.

International DJ Paul Fisher purchased an apartment through his investment vehicle, YLB Developments, an abbreviation of his trademark phrase "You Little Beauty".

The purchase comes as Fisher and his wife Chloe are developing their own luxury apartment project further north in Palm Beach. Their boutique beachfront development, Pescado, comprises just seven apartments on Jefferson Lane, which start from just shy of $6 million. The couple intend to retain the two-level penthouse as their Australian base between international touring commitments.

Melbourne Storm coach Craig Bellamy and his wife Wendy have also invested in Esprit, purchasing two apartments after spending decades holidaying on the southern Gold Coast. They also have a luxury apartment in Joe Adsett's Rockpool, less than 400m away from Esprit.

<h2>Boutique project draws owner-occupiers</h2>

Esprit launched in 2021 and sold strongly, with buyers drawn to its boutique scale, beachfront position and contemporary design.

The completed development comprises 94 apartments across 11 levels, offering expansive floorplans designed primarily for owner-occupiers rather than the investor market.

Crowning the building is Club Esprit, pitched as being the Gold Coast's first residential rooftop wellness centre. The roof features a&nbsp;25 metre magnesium lap pool, which is surrounded by wet daybeds and poolside cabanas,&nbsp;multiple barbecue areas,&nbsp;a yoga and relaxation play lawn, and a private dining room with a kitchen scullery, bar, lounges, and an outdoor terrace.

The wellness centre is&nbsp;fully equipped with a Technogym, ice bath, infra-red sauna, steam room, thermal room, and treatment room. The roof has views spanning&nbsp;Rainbow Bay, Snapper Rocks and the Pacific Ocean.

<h2>S&amp;S Projects continues to shape Rainbow Bay</h2>

S&amp;S Projects founder Paul Gedoun has become one of the key figures behind Rainbow Bay's evolution over the past several years.

After establishing S&amp;S Projects, Gedoun has focused on delivering lifestyle-driven apartment developments designed primarily for owner-occupiers seeking a permanent coastal home.

Esprit is Gedoun's third completed project in Rainbow Bay, following Flow and Awaken, both of which achieved record prices for the suburb.

He is now delivering <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, a 38-apartment development on Boundary Street that is currently selling, and has no plans to leave the precinct anytime soon. S&amp;S Projects has also lodged plans for its fifth Rainbow Bay development, an 88-apartment project on Boundary Street featuring a strong wellness focus.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">First look: S&amp;S Projects proposes 88-apartment wellness tower at Coolangatta's Boundary Street</a>

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Joel Robinson

Who's who of buyers revealed as Esprit Rainbow Bay settles

Nature Based Cities (NBC), the not-for-profit organisation focused on improving biodiversity and nature outcomes in urban development, has launched its latest industry design guidelines and accreditation framework, this time targeting precinct-scale residential communities.

The move extends NBC’s influence beyond its initial focus on medium and high-density residential developments. Several projects have already achieved NBC accreditation since the launch of its Medium &amp; High-Density Residential Guidelines in early 2025.

The expansion into masterplanned communities and new residential precincts reflects the growing need for stronger nature-positive benchmarks as Australia’s outer suburban growth corridors continue to expand at pace.

Paul Hameister OAM, NBC Founder and the Executive Chairman of Melbourne developer Hamton who itself leans heavily into nature and biodiversity in its developments, says the&nbsp;nature-first approach to mitigate the effects of climate change has become standard in other parts of the world such as the UK, but Australia is lagging.&nbsp;Australia’s environmentally sustainable design (ESD) rating tools have no minimum mandatory requirements for living landscapes.

“We’ve always wanted to do more, and we know other developers who want to do more, but the ESD rating tools just aren’t there,” Hameister says. “In Australia, you can have a five-green-star rated building that’s concrete and glass with not a blade of grass. 
 
“The focus is on reducing emissions, which is laudable, but there hasn’t been enough attention paid to protecting and re-establishing nature. We need both for the health of the environment and for communities.”

He says that having now&nbsp;made good progress in supporting developers of medium and high-density residential projects, NBC is now looking to bolster better nature-based decision-making and recognise developers of greenfield projects in the outer ring and large inner-ring brownfield precincts, who want to champion nature and living landscape as a defining feature.

Since 2022, the not-for-profit has sought to remove the roadblocks preventing developers from incorporating nature and living landscapes into their projects, shifting the conversation from the reduction of emissions and grey infrastructure, toward recognising nature as an essential infrastructure.

The New Communities Design Guidelines and Scorecard arm developers with the tools needed to deliver a nature positive outcome for their new communities. Intended to be adopted at the outset of the planning process, the guidelines are designed to help create communities that are cooler, healthier and more resilient while also enhancing social wellbeing and long-term economic value.&nbsp;

New Communities developers seeking accreditation will be independently assessed across a range of key criteria including ecology, tree canopy, biodiversity, and walkability. Once the masterplan is complete and submitted for approval, the scorecard is formalised based on proposed outcomes. Projects that meet the NBC criteria will receive either Commended or Exemplary accreditation outcomes, creating a clear benchmark for nature-positive new communities in Australia.&nbsp;

Janis Fischer, Director at Tract and NBC Advisory Council member, said the development of new communities in our suburbs can have a substantial impact on nature and biodiversity.

"By incorporating nature-based design principles at the inception of a project, developers and their design teams can achieve nature positive outcomes that are good for both people and the planet.’’&nbsp;

NBC accredited New Community projects will gain access to NBC branding and marketing tools to help communicate their nature-based credentials to purchasers and the broader market.&nbsp;

Nature Based Cities: A new Australian benchmark for developing nature-positive new communities

Apartment buildings are increasingly being designed around how people actually live day to day, not just how they want a building to look.

For buyers, that shift is showing up in practical inclusions that respond to changing habits. Work-from-home spaces, EV charging, wellness amenities, secure bike storage and parcel management are becoming part of the broader apartment conversation, reflecting a move toward buildings that reduce friction in everyday life.

Online shopping has become one of the clearest examples of that change.

Australians spent a record $82.6 billion online in 2025, with nearly one in four retail dollars now spent online. That has made parcel delivery a regular part of apartment living, rather than an occasional inconvenience.

For apartment residents, however, the delivery process can be less straightforward than it is for detached homes. Parcels may be left in lobbies, redirected to Post Offices, missed entirely, or placed under the responsibility of building managers and concierge teams.

That is why secure parcel infrastructure is increasingly being considered alongside more familiar apartment amenities.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/-VjjLwoViX0?si=A3k7ws9NX35Uac7_" title="YouTube video player" width="560"></iframe>

Australia Post Parcel Lockers offer one way to address the issue. When a parcel arrives, residents receive a notification through the AusPost app or SMS, then collect it using a QR code or one-time PIN. The parcel is kept secure, accessible and removed from common areas.

The broader Parcel Locker network now includes more than 1,500 locations across Australia, positioned at Post Offices, shopping centres, supermarkets, transport hubs and other accessible locations.

For new apartment projects, the relevance is clear. A building’s amenity offering is no longer only about lifestyle spaces, but also about convenience, security and functionality.

As buyer expectations evolve, secure parcel delivery is becoming part of the same design conversation as flexible working, sustainable transport and resident wellbeing.

It is one less thing for residents to worry about, and another example of apartment design adapting to the way Australians now live.

Apartment design is adapting to the way Australians shop

While school holidays and trips to Europe tend to define the winter property market, there's been no cold snap at <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> in North Sydney.

Developer-builder&nbsp;<a href="https://www.apartments.com.au/developers/aland">ALAND</a> sold more than $35 million worth of apartments throughout June, including a $6.8 million apartment that now ranks among the highest apartment sales ever recorded in North Sydney.

SRM Residential agent Ben Stewart said buyer demand throughout June reflected a mix of improving market confidence and longer-term thinking from owner-occupiers.

"We're seeing strong demand from owner-occupiers who are taking a longer-term view," Stewart said.

"Many recognise the opportunity to secure an apartment in an iconic building and premium location while values remain attractive. They may initially lease the property, but the intention is to eventually move in themselves, rather than purchasing purely as an investment."

[smartcode_project:default project_id=134323 project_image_fid=367129]

Located at 177 Walker Street, The Walden will deliver 161 one, two, three and four-bedroom residences across a 30-storey tower designed by Rothelowman. Every apartment occupies a corner position, maximising natural light, cross ventilation and views across Sydney Harbour, the Opera House, Sydney Heads and the northern districts.

Rather than a traditional balcony, the residences feature winter gardens that seamlessly extend the open plan living areas, creating versatile spaces for relaxing or entertaining throughout the year. Floor-to-ceiling glazing draws in natural light while showcasing sweeping views from the building's elevated Walker Street position.

Every apartment features high-end Calacatta marble, bespoke joinery, and fully integrated appliances.

The larger residences have been planned with distinct entertaining and private zones, with many master suites positioned on corners to capture natural light and harbour views. Walk-in dressing rooms, freestanding baths and refined stone finishes reinforce the house-like feel that has resonated with downsizers and owner-occupiers.

[smartcode_project:default project_id=134323 project_image_fid=6393]

Rothelowman Principal Ben Pomroy said the project was designed to make the most of its unique position overlooking the harbour.

"The Walden is a celebration of all things beautiful, curated for those who expect nothing less than exceptional," Pomroy says.

"Meticulously designed entertaining spaces and light-filled living areas that capitalise on capturing the natural beauty of Sydney's iconic harbour."

Residents will also have exclusive access to The Pavilion, a dedicated amenity building featuring a rooftop pool, wellness studio, gymnasium, sauna, concierge service, residents' lounge, private dining spaces and work-from-home facilities.

[smartcode_project:default project_id=134323 project_image_fid=6402]

The project marks ALAND's first major luxury apartment development in Sydney's inner-city market after more than two decades delivering residential communities across Greater Sydney.

Founder and CEO Andrew Hrsto previously said the rarity of the Walker Street site made it an opportunity the company could not overlook.

"This is a rare opportunity to bring a truly exceptional project to life in one of Sydney's most iconic locations, and to showcase our craftsmanship and design expertise at a world-class level," Hrsto said.

[smartcode_project:default project_id=134323 project_image_fid=6383]

The Walden has been introduced to the market at a time when demand for living in North Sydney is at an all-time high. Billions of dollars have been invested in infrastructure, including the recently opened Victoria Cross Metro station, located just 300 metres from The Walden, providing residents with direct access to the Sydney CBD in just minutes.

Private investment has also transformed the area through the arrival of new retail and dining destinations, elevating the lifestyle offering in what was once considered primarily a commercial precinct rather than an aspirational residential address.

The Walden is currently under construction and is scheduled for completion in 2028.

[smartcode_project_cta:default project_id=134323]

ALAND records $35 million in sales in North Sydney as The Walden bucks quiet winter selling season

The long-awaited redevelopment of the former Eastlakes Shopping Centre site has reached a major milestone, with Conquest's plans for a new mixed-use precinct officially placed on public exhibition.

The State Significant Development Application would transform the 1.7-hectare site at <a href="https://www.apartments.com.au/new-apartments/19a-evans-avenue-eastlakes-nsw-2018">19A Evans Avenue</a> into one of Sydney's largest urban renewal projects, delivering 736 apartments above a new shopping centre anchored by Woolworths, alongside specialty retail, dining, commercial space and new public open spaces.

The public exhibition marks the next chapter for the project after <a href="https://www.apartments.com.au/developers/conquest">Conquest</a> acquired the stalled Stage Two development from Crown Group, who completed the first stage across the road prior to their voluntary liquidation.

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="5fca22c5-d1ed-4e2c-8801-03f7df1eafc8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland%20podium.png?VersionId=uomwr41nF8CmLUZRDcu3mHQechlbxucS" />

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Designed by DKO Architecture, the proposal comprises four residential buildings ranging from 14 to 18 storeys above a two-level retail podium. The development would deliver 736 apartments, including 74 affordable homes, 215 Build-to-Rent apartments and 521 market residences. Provision has also been made for dual-key apartments, which could increase the total number of dwellings to 877.

At ground level, the shopping centre has been designed as the suburb's new meeting place, anchored by a full-line Woolworths and complemented by a curated mix of fresh food retailers, cafés, restaurants, health services and everyday convenience shopping. Generous pedestrian links and landscaped public spaces will connect the retail precinct through to Jack Mundey Reserve, creating a more walkable and connected neighbourhood.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

"Eastlakes has been overlooked for too long, and this is the community’s moment. We are building a shopping centre and homes, a genuine heart for the suburb, and we genuinely want locals to help shape it."

"We enrich communities through the creation of homes, places, and experiences designed for life, built to last, and owner for generations. That starts with listening, so we warmly encourage everyone with a connection to Eastlakes to view the plans and share their thoughts."

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="22f6fb20-54fb-4bd7-8a92-48fafdd00608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland.png?VersionId=cugp7s9hrMHGJJdYzkeAkrFoQgnF4GXf" />

DKO said the design had been shaped by the site's landscape setting and surrounding open space.

"Our vision for the site embraces its unique Bidjigal identity by blending the residential living with generous landscaping and a material palette inspired by the Bidjigal locality, and celebrating the panoramic views to Botany Bay and the wetlands reserves."

"Taking cues from Country, we seek to harmonise built form with the landscape and lightly touch the earth. By reconnecting, retaining and regenerating existing ecology, and weaving in natural elements, we can deepen our connection to Country."

The landscape strategy extends across the podium and rooftops, incorporating communal gardens, children's play areas, lawns, community gardens, family gathering spaces and extensive tree planting. New landscaped links will also strengthen the connection between the precinct and Jack Mundey Reserve, while publicly accessible open spaces have been integrated throughout the development.

The proposal builds on Conquest's broader placemaking strategy for the site. Through an ongoing partnership, local artist Joe Rashbrook has been appointed Urban Art Curator, working alongside young residents to transform the project's site hoardings into a public art gallery that allows the community to engage with the redevelopment before construction is complete.

Conquest has rapidly expanded its development pipeline since acquiring the Eastlakes site, with more than $6 billion worth of mixed-use projects now in planning across Sydney, including Stanmore, Castlecrag and Waterloo.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

Jonathan Chancellor

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